Market's view on Young & Co's Brewery
Published on April 2024
- Stock watchers discuss the historical buying opportunities for shares under £6, with potential revisits if A shares decline due to wider market sell-offs.
- Queries about whether the stock price has bottomed out.
- Discussions focus on the acquisition quality from CPC and its alignment with current stock valuations, noting that discounts between voting and non-voting shares have returned to normal levels.
- Observations on the relative movements of YNGA and YNGN shares over five years, with specific mention of a period in 21/22 where YNGA outperformed YNGN.
- Analysis of Young’s acquisition of CPC, highlighting the issuance of new Young’s A Shares and potential shareholder reactions; concerns about CPC’s underperformance and how Young’s management could bring improvements.
- Discussion about Young’s share price recovery being driven more by sentiment than news.
- Evaluation of Young’s market recovery compared to peers, with caution advised regarding future consumer spending and potential margin reductions.
- Mention of the complexities related to companies with dual share types and the implications for shareholder value and control.
- Speculation on the potential for a merger of share classes at Young’s, comparing it to recent activities at other companies, and the unlikelihood of such a move due to familial control and the need to maintain equitable value distribution between share classes.
- Satisfaction expressed with the company’s performance despite challenges such as the end of rates relief, VAT reductions, and increases in costs, with a dividend increase also welcomed.
- Discussion on the value disparity between YNGN and YNGA, with speculation on the possibility of equalising voting rights and its potential impact on market value.